pestle analysis chocolate industry

Lindt PESTLE Analysis By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. An even better option is Fair Trade Chocolate. It first sold its items in United States in 1905. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. In doing so, the companys machinery learned to adjust itself throughout the day. - Societal Norms and Hierarchy What sort of hierarchy and norms are acceptable in society also influence the types and level of consumption in a society. Then they scorned the dollar. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Yasemin Oraman. * Cadbury 's occupy about 72% of the chocolate /confectionery market with Dairy Milk Five Star Perk Gems * The organized sector in chocolates constitutes 40%. Switzerland is one of the largest economies in the world. Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. Chocolate Gourmet should consider demographic trends before new product developments and integrate features that cater to this segment. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. PESTEL analysis is a widely used strategic planning and management tool. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. - Empowerment of Supply Chain Partners Chocolate Gourmet should analyze areas where technology can empower supply chain partners. Tax rates were also terrible, according to Mr. Bilbrey. Journal of Economic Geography, 1 (4), pp.405 Norton, Marcy. Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. PESTEL Analysis, SWOT Analysis and Risk Analysis of Egypt Egypt PESTEL Analysis This report covers Egypt 's PESTEL (political, economic, social, technological, environmental and legal) analysis. Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market environment. An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit in Turkey: Market Growth, Challenges and Prospects. PEST or PESTLE analysis is used to identify important external (macro-environment level) forces that could affect a company, creating opportunities or threats for the organization. If they were to save money here, itd be a higher return. Environmental regulations, such as those related to waste disposal and sustainable sourcing of cocoa and other ingredients. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. - Securities Law What are the securities law in the country and what are the conditions to list the company on national or regional stock exchange. Technology is fast disrupting business models across various industries. Feel free to connect with us if you need business research. In this PEST analysis of Cadbury, we saw how this leading chocolate company has dealt with external factors in the UK and in many other countries as well. Cadbury is synonymous with chocolate consumption worldwide. It is written by Glenn Carroll, Greg Powell and shed light on critical areas in field of Strategy & Execution, Entrepreneurship, Strategy that the protagonist in the case study is facing. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. But while chocolate and other products sold by the company are socially acceptable worldwide, Cadbury has been on the receiving end of controversies, the recent one involving Cadbury products being Halal Certified to cater to Muslim markets around the world. Hersheys also adopted technology to move people further down the grocery aisle. Chocolate Gourmet can leverage such a situation to hire the best people in business. - Price Fluctuations in both Local and International Markets Compare to the level of quantitative easing in last decade the prices of Chocolate Gourmet products and prices of overall products have remained sticky in the US market. It is also imperative to use technology to create competitive advantage in the industry. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Hawkins. - Societal Norms and Hierarchy What sort of hierarchy and norms are acceptable in society also influence the types and level of consumption in a society. Chocolate Gourmet should consider the fact that at deficit levels of United States in an emerging economy can lead to rampant inflation and serious risks of currency depreciation. Opening shop in the early 19thcentury, Cadbury has emerged as a global brand with factories and offices the United Kingdom and North America, and a notable presence in Asia and Africa as well. Economic Status. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. Chocolate Hawkins can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. - Inflation Rate The inflation rate can impact the demand of Chocolate Hawkins products. Cadbury is a well-known producer and distributor of chocolate and milk-based products. 1 . - Unrest within the Country & Chances of Civil Unrest We dont think that Chocolate Hawkins business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. The first step in conducting a PESTEL analysis is to gain an understanding of the brand. SWOT analysis of Cadbury 12. Amul Chocolates is a product category of the milk company Amul which is the brand name for the Gujarat Cooperative Milk Marketing Federation. PESTLE analysis. This technology could be adopted for Hersheys other products, particularly with chocolate. Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. Political: Nestle is a global company and in the food and beverage industry one of the most important factors to consider is globalization. According to an estimate, Nestle, Dr. Pepper Snapple, Coca-Cola, Pepsi, and Danone recycle approximately 6.6% of the bottles annually. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Digital Chocolate case study (referred as Chocolate Hawkins for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Organizational Development and strategic management. The Hersheys Company is the largest chocolate manufacturer in North America and yet theyve hit major setbacks both politically and economically. Chocolate Gourmet can make strategies based on the stable political environment. Cadbury 11. - Work Force Productivity Work force productivity in US has grown by 25-30 % in last two decades even though the salaries are not reflecting those gains. - Immigration Policies and Level of Immigration What are the immigration policies of the country, what is the level of immigration, and in which sectors immigration is encouraged. SWOT analysis of Amul Chocolates. Its installed specifically for their Twizzler candies. Foreign currency exchange rates were insignificant in the second quarter. The rest of the billions of bottles end up polluting the ocean and endangering sea life. Free Summary Report This report contains the table contents only. Chocolate harvested from cocoa trees is susceptible to pests, diseases, and pesticide use. Two giants dominated: Hershey's controlled 32.6% of the market and Mars had 29.6%. And even before that in 2007, Cadbury Schweppes decided to outsource a major portion of its accounting and HR to an Indian firm in the face of increasing operational expenses and reducing margins. With so many chocolate options and new additions for 2018, Mr. Buck seemed confident in the variety they offered, as well as the new marketing campaigns launched for the products. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. Definition of PESTEL / PEST / STEP Analysis. Mars Incorporated. The chocolate industry has to anticipate the outcomes of their business operations in such a way that are in abidance with the rules and regulations made by the government of the country. The total retail value of the U.S. market for chocolate was estimated at $13.7 billion in 2002, a 10.2% increase from 1998. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. Market Overview 2023-2028: The India chocolate market size reached US$ 2.4 Billion in 2022. In Asia authority is respected while in west it is something to rebel against. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. Some of the legal factors that may impact the chocolate industry in the UK include: Some environmental factors that may affect the chocolate industry in the UK include climate change and its impact on cocoa production, deforestation and habitat destruction in cocoa-growing regions, resource consumption and waste generation in the manufacturing process, and the environmental impact of packaging and transportation. Introduction In 1966 Carl Kirkland co-founded Kirkland's in Jackson, Tennessee (Kir15). According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. Many US companies have incurred losses in Mexico in regular forex crisis in that country. Chocolate in a Bloom 6. Published by HBR Publications. One such act is called Shared Goodness; the company promises to keep communities, children, and the planet aligned with their business. In each of these locations, the sales were weaker. Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. E - Environmental. For internal factors, check out the swot analysis of the UK. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. Strategy planning process often requires five steps - Business Laws Before entering into new market Chocolate Hawkins has to assess what are the business laws and how they are different from home market. - Corporate Social Responsibilities Culture Are Chocolate Gourmet present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. Mass-market chocolatiers were defined as those selling chocolate at less than $10 per pound retail, whereas gourmet chocolatiers were defined as those selling chocolate at or more than $10 per pound retail. Regulations: Regulations on food safety, labeling, and advertising can impact the manufacturing and marketing of chocolate products. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. Political factors: Government policies and regulations can have a significant impact on the confectionery industry. It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. According to Michael Porter organizational performance is to large extend determined by various industry forces. Market Segmentation 13. The Chocolate Confections Corporation PESTEL Analysis will look at the external factors - political, economic, social, technological, environmental, and legal. PEST is an acronym that stands for Political, Economic, Socio-cultural and Technological. 5. They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. Thus significantly impacting the ability of Chocolate Hawkins to build sustainable competitive advantage Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. It is written by Linda A. Hill, Alison Berkley Wagonfeld and shed light on critical areas in field of Organizational Development, Creativity, Entrepreneurship, Leading teams, Product development that the protagonist in the case study is facing. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. - Immigration Policies and Level of Immigration What are the immigration policies of the country, what is the level of immigration, and in which sectors immigration is encouraged. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. T - Technological. - Data Protection Laws Chocolate Gourmet needs to assess what are the data laws in the country and what it needs to do to comply with them. - Corporate Social Responsibilities Culture Are Chocolate Hawkins present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. 3. Opening shop in the early 19 th century, Cadbury has emerged as a global brand with factories and offices the United Kingdom and North America, and a notable presence in Asia and Africa as well. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Gourmet. Brexit: The UKs departure from the European Union may have an impact on the chocolate industry, such as changes in trade agreements and regulations. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. - Fiscal and Monetary Policies The Republican government tax break culture has increased the deficit and it can lead to fiscal trouble for the economy in coming years. 4. - Nature of Social Contract between Government & Society Before entering into a market Chocolate Hawkins needs to understand the nature of social contract between government and society. And although theyre doing better financially in 2018 compared to the disastrous year of 2015, the company is not on the hunt to increase expenses just yet. - Democracy & Other Democratic Institutions According to Linda A. Hill, Alison Berkley Wagonfeld the democratic institutions are needed to be strengthened further so that business such as Chocolate Hawkins can thrive in an open, transparent and stable political environment. PESTLE stands for: P - Political. Feb 20, 2023 (The Expresswire) -- "Liqueur Chocolate Market" new research report for [2023] provides a comprehensive overview, including market size, share, growth rate, PESTEL analysis, SWOT . - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. It would focus on the macro-environmental factors that impact her growth and productivity. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. - Role Local Governments Play Local governments are highly influential in the policy making process and implementation as most of the policies and regulations are implemented by the local government as enforcement agencies mostly report to local government in their own states regarding various laws. Note on the U.S. Chocolate Market case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. - Attitude towards Health & Safety The attitude towards health and safety is often reflected in the quality of the products and cost structures of manufacturing processes. When too heavy, additional ingredients go to waste. - Work Force Productivity Work force productivity in US has grown by 25-30 % in last two decades even though the salaries are not reflecting those gains. In one respect, Cadbury was born as a result of social factors. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. -Kew raw materials are sourced from local suppliers. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. The Chocolate Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. - Technology transfer and licensing issues for Chocolate Gourmet laws and culture of licensing of IPR and other digital assets should be analyzed carefully so that Chocolate Gourmet can avoid shakedowns and IPR thefts. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Out of which, her per capita income was 50,844 US dollars and it's 10th highest in the world. Cost Based Pricing could be a bad strategy under such conditions. The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. - Size of Government Budgets both Local Governments and National Government The government at both national level and local levels are running deficit budgets which is boosting growth in the short term but may lead to increase in inflation over medium term. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. Research Methodology 4. Here are some facts and figures about the beverage industry: The global beverage market size was valued at $1.45 trillion in 2020, and is projected to grow at a CAGR of 6.6% from 2021 to 2028. - Cost of Production and Trends Chocolate Gourmet should assess - What are the cost of production trends in the economy and level of automatization. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. But its still a business at the end of the day; higher returns are most important for its survival. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. Luckily for the company, things turned around in the first two quarters of 2018. 3. Until 2025, the chocolate confectionery market in South Africa is forecast to reach 1.03 billion USD (in retail prices), thus increasing at a CAGR of 5.98% per annum for the period 2020-2024. In 2009, Hawkins was eager for Digital Chocolate to start developing new types of mobile games that could be played by multiple players over a period of time. As population is ageing it will require less tech intensive products. Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. The Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. This can help Chocolate Gourmet to bring in more transparency and make supply chain more flexible. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. But even then, recession did play its part as the company managed only to hit the lower end of its 4%-6% revenue for 2009, the peak of the recession. 4. Show . For example if the supply chain is not flexible it can lead to bottlenecks if shipments from one part of the world are delayed because of sudden climate shift. Some political factors that can affect the chocolate industry in the UK include: Trade policies: Changes in trade policies and tariffs can affect the cost and availability of raw materials, as well as the export and import of finished chocolate products. Some of the economic factors that affect the chocolate industry in the UK include: Consumer demand: Changes in consumer preferences and tastes can affect the demand for chocolate products, which can impact the industrys profitability. Since then, the PESTLE analysis has become a popular strategic tool to assess the macro environment of organisations . The gourmet category was expected to grow as consumers incorporated more expensive gourmet foods into their diets, a trend beginning with the beer, wine, coffee, cheese, and ice cream industries. Secondly governments from all parties adhere to the treaties made by the previous governments. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. - Per Capita and National Carbon Emission What is the per capita carbon emission of the country and what is the overall level of carbon emissions of the country. First with the consumer pushback against their usage of the Ivory Coast (and potentially child labor). In 2011, it is seen that major chocolate . If the legal system is not strong then Chocolate Gourmet can face numerous challenges from consumer petitions to shakedowns from authorities. Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. Your email address will not be published. At EMBA PRO, - Cost of Production and Trends Chocolate Hawkins should assess - What are the cost of production trends in the economy and level of automatization. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. Food safety and labeling regulations, such as those related to allergen labeling, nutritional information, and ingredient labeling. Recommended: How to write a PEST analysis. Hersheys current Company President and Chief Executive Officer, Michele Buck, has said the company will continue to invest in their core bands and build upon strategies to further drive growth. It can enable Chocolate Hawkins to hire skilled workforce at competitive salaries. Some technology factors affecting the chocolate industry in the UK could include: Automation: Chocolate manufacturers in the UK are increasingly adopting automation technology to streamline their production processes and reduce labor costs. Cadbury made diverse sorts of chocolates and different items which are sold in a few nations around the globe. Many US companies have incurred losses in Mexico in regular forex crisis in that country. PEST is an acronym for Political Economic Social and Technological factors which are used to assess the market for a business. But on the flip side it does increases both time and cost of doing business and getting certifications and clearances. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. Chocolate Hawkins should be careful about the history of forex risk before entering new market. Those that cant afford it are also a problem because well, theyre not buying the chocolate. Chocolate Hawkins should build a strategy that can integrate societal values, infrastructure, and Chocolate Hawkins business model. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. This is why theyre using A.I to improve their products and encourage more sales. To them, Americans have the luxury of buying several premium chocolates. The UK chocolate market is the biggest in all European market. 2012). - Intellectual Property Rights Protection Chocolate Hawkins should assess the level of protection that intellectual property rights get under the legal system of the country. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. E - Economic. Traceability: Technology such as barcoding, RFID (radio frequency identification), and blockchain are being used to enhance traceability of the chocolate supply chain, from cocoa bean to finished product. Macroeconomics is the study of large-scale economic elements, often relating to countries as a whole.The factors this analysis represents are political, economic, social, technological, legal and environmental. S - Social. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Chocolate Industry in India 7. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. In this section, we present a brief analysis of each element in relation to the . - Segregation of Political Responsibilities between Different Government Agencies There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. PESTEL analysis is mainly the assessment of macro environment factors. . Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. -Efforts to reduce consumption of water and energy and optimize transport routes. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. Today, we'll study the pestle analysis of UK. 1. Objective 3.

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